UK FCA Eases Stablecoin Regulations, Cutting Issuer Costs
The UK Financial Conduct Authority has halved capital requirements for stablecoin issuers, reducing the coefficient from 2% to 1% of circulating value. This move significantly lowers operational costs while maintaining strict 1:1 reserve backing with high-quality liquid assets.
Regulatory divergence emerges as the UK's framework now sits below the EU's MiCA standards. The FCA eliminated redemption forecasting rules and raised excess reserve allowances to 5%, granting issuers greater liquidity management flexibility.
Notably, the scrapped £20,000 holding limit removes barriers for institutional participation. These changes position London as a more competitive hub for digital asset innovation, potentially attracting stablecoin issuers seeking favorable regulatory conditions.
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